Singapore Stock Market Due For Support On Thursday

The Singapore stock market has tracked lower in three straight sessions, slumping almost 40 points or 0.8 percent along the way. The Straits Times Index now sits just shy of the 4,810-point plateau although it may stop the bleeding on Thursday.

The global forecast for the Asian markets is cautiously optimistic and fairly fluid in light of U.S. demands to acquire Greenland. The European markets were mixed and the U.S. bourses were up and the Asian markets figure to follow that lead.

The STI finished modestly lower on Wednesday following losses from the properties and industrials, while the financial sector was mixed.

For the day, the index shed 18.12 points or 0.38 percent to finish at 4,809.88 after trading between 4,790.43 and 4,814.77.

Among the actives, CapitaLand Ascendas REIT dipped 0.34 percent, while CapitaLand Integrated Commercial Trust skidded 0.83 percent, CapitaLand Investment surrendered 1.01 percent, City Developments and Frasers Centrepoint Trust both slipped 0.44 percent, DBS Group gave up 0.19 percent, DFI Retail Group retreated 0.97 percent, Genting Singapore sank 0.68 percent, Hongkong Land plummeted 3.09 percent, Keppel DC REIT declined 0.89 percent, Keppel Ltd shed 0.56 percent, Mapletree Pan Asia Commercial Trust stumbled 1.35 percent, Mapletree Industrial Trust lost 0.47 percent, Mapletree Logistics Trust dropped 0.74 percent, Oversea-Chinese Banking Corporation collected 0.44 percent, SATS tumbled 1.04 percent, Seatrium Limited added 0.47 percent, SembCorp Industries tanked 1.48 percent, Singapore Exchange fell 0.46 percent, Singapore Technologies Engineering gained 0.42 percent, SingTel plunged 1.75 percent, Thai Beverage climbed 1.08 percent, United Overseas Bank perked 0.08 percent, UOL Group eased 0.10 percent, Wilmar International slid 0.31 percent, Yangzijiang Shipbuilding slumped 0.86 percent and Frasers Logistics & Commercial Trust was unchanged.

The lead from Wall Street is positive as the major averages opened higher on Wednesday and stayed in the green throughout the session, although not without volatility.

The Dow jumped 588.64 points or 1.21 percent to finish at 49,077.23, while the NASDAQ rallied 270.50 points or 1.18 percent to end at 23,224.82 and the S&P 500 climbed 87.76 points or 1.16 percent to close at 6,875.62.

The volatility on Wall Street came as traders reacted to President Donald Trump’s latest remarks about his efforts to take control of Greenland.

Early buying interest was generated in reaction to Trump’s speech at the World Economic Forum in Davos, Switzerland, where he ruled out the use of military force to take control of Greenland.

However, buying interest waned over the course of the morning amid lingering concerns about trade between the U.S. and Europe due to the dispute. But buying interest returned when Trump said he would not go forward with the tariffs he threatened to impose on several European nations

Crude oil posted incremental gains on Wednesday as traders assessed Trump’s speech at the World Economic Forum, where he sought negotiations on the U.S. bid to acquire Greenland. West Texas Intermediate crude for March delivery was up $0.10 or 0.17 percent at $60.46 per barrel.

Market Analysis